What Is the New Amazon FBA Fee Change (April 2022)?
Amazon has established itself as the world’s largest online retail platform. Third-party sellers have registered with the Amazon marketplaces to optimize their business potential and maximize productivity. To avoid getting saturated in the cut-throat competition, sellers must adopt proven strategies to outrank their competitors and boost sales. This will enable them to become a top-tier seller and effectively overcome the inherent hurdles. Amazon sellers who want to gear themselves towards success must consistently track their ad and sales data, make necessary changes to optimize listings, and increase conversions. They should also keep a keen eye on the competitor’s sales rank, velocity, and profitability to know where they stand and adopt practices to stay a step ahead.
Sellers need to develop a comprehensive understanding of their products to avoid various issues such as low inventory, page rank, and negative reviews before these problems magnify. They need to adopt technological support to develop a 360° view of their products and performance. It will help them adopt new and innovative solutions to boost product ranking. For sellers, the Amazon seller central reporting tool is of strategic importance. It is a go-to resource for sellers as it functions as a one-stop destination for various purposes. They can effectively leverage the data-driven insights from the reports, manage their selling account, add product information, make inventory updates, manage payments, and find helpful content to make the most of their Amazon business.
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According to the latest updates, a new Amazon FBA fee increase is coming soon! Amazon charges a wide arrange of FBA fees that you pay Amazon for having it fulfill your order. The price depends on three important factors: the product’s weight, size, and category to which it belongs.
Signing into your Seller Central account will pop up the notification “Update to US FBA fulfillment fees starts April 28.” What is this about?
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The latest Amazon FBA Fee Change
The FBA fee change pertains to Amazon’s latest update adding a 5% fuel and inflation surcharge. The surcharge will become effective from this April 28 to FBA fulfillment per unit rates.
Amazon sellers must note that the fee update increases FBA “fulfillment fee per unit rates.” Thus, the Amazon charges concerning the pick/pack/ship fee for delivering orders to your customers have increased. It is in no manner an Amazon commission.
Is it a major bump?
The US FBA fulfillment fee changes will cover the core FBA fulfillment fee, fulfillment fees for apparel, and dangerous goods. Due to inflation and increased fuel costs, Amazon is hitting sellers with a 5% increase in fees. The surcharge will apply directly to sellers and not Amazon shoppers. But, since it will impact sellers’ margins, the prices of the products are likely to increase.
The surcharge will affect some sellers more than others. But, most sellers will not have to immediately raise their prices. Sellers who use fulfilled-by-merchant will not be impacted at all. Due to the surcharges by UPS/FedEx, they already pay higher charges than usual.
To Conclude:
The surcharge in FBA fees may not be a major bump for many, but sellers must be aware of it since it does affect their bottom line.
